Current state-of-the-art thermal barrier coating (TBC) systems consist of partially stabilized zirconia coatings plasma sprayed over a MCrAlY bond coat. Although these systems have excellent thermal shock properties, they have shown themselves to be deficient for a number of diesel and aircraft applications. Two ternary ceramic plasma coatings are discussed with respect to their possible use in TBC systems. Zirconia-ceria-yttria (ZCY) coatings were developed with low thermal conductivities, good thermal shock resistance and improved resistance to vanadium containing environments, when compared to the baseline yttria stabilized zirconia (YSZ) coatings. In addition, dense zirconia-titania-yttria (ZTY) coatings were developed with particle erosion resistance exceeding conventional stabilized zirconia coatings. Both coatings were evaluated in conjunction with a NiCr-Al-Co-Y2O3 bond coat. Also, multilayer or hybrid coatings consisting of the bond coat with subsequent coatings of zirconia-ceria-yttria and zirconia-titania-yttria were evaluated. These coatings combine the enhanced performance characteristics of ZCY with the improved erosion resistance of ZTY coatings. Improvement in the erosion resistance of the TBC system should result in a more consistent delta T gradient during service. Economically, this may also translate into increased component life simply because the coating lasts longer.